(MENAFN) Reports from Bloomberg indicate that economic advisers to former United States President Donald Trump are exploring strategies to deter countries from transitioning away from the United States dollar in international trade. Concerns have arisen as emerging markets, including BRICS nations, increasingly challenge the dollar's hegemony.
Trump and his team, gearing up for the upcoming presidential election in November, are reportedly deliberating on punitive measures against both allies and adversaries that opt to conduct trade using currencies other than the dollar. Potential options under consideration include export controls, currency manipulation charges, and tariffs.
The push for retaining the dollar's prominence comes amidst a global trend towards utilizing national currencies in trade transactions instead of relying on the greenback. This trend gained momentum notably after Russia faced severe financial sanctions in 2022, leading to a surge in efforts to de-dollarize trade transactions.
The recent passage of a bill, the REPO Act, as part of a USD61 billion military aid package for Ukraine, has raised concerns among financial experts about accelerating de-dollarization. The REPO Act grants the United States authority to seize Russian state assets held in American banks, potentially intensifying global efforts to move away from the dollar.
Former President Trump has expressed apprehensions regarding the potential decline of the dollar's status under President Joe Biden's administration. He warned that losing the dollar's dominance would equate to a significant defeat for the United States.
According to Bloomberg, Trump's economic advisers and campaign team have specifically discussed strategies to counteract de-dollarization efforts by BRICS countries, indicating a concerted effort to maintain the dollar's supremacy in global trade.
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